An Examination Of Petrofac Limited (LON:PFC)
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Petrofac Limited (LON:PFC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of PFC, it is a dependable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Petrofac here.
Adequate balance sheet average dividend payer
PFC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. PFC's has produced operating cash levels of 0.45x total debt over the past year, which implies that PFC's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
PFC’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.4%.
Next Steps:
For Petrofac, I've put together three important aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for PFC’s future growth? Take a look at our free research report of analyst consensus for PFC’s outlook.
Historical Performance: What has PFC's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PFC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
